The GSMA today announced the findings of a new report, “Wholesale Open
Access Networks”, which examines the performance of the wholesale open
access network (WOAN) model (also known as single wholesale network or
SWN) in five markets around the world: Kenya, Mexico, Russia, Rwanda and
South Africa. This report, which follows up on a 2014 study that
assessed the potential economic case for implementing the wholesale
network model, found that, in the countries examined, there was only one
network rolled out, with all other markets plagued by slow progression
and delayed and/or cancelled launches.

“Policymakers in countries considering a move to a wholesale open access
network for 4G services may believe they can achieve greater network
coverage compared with models that rely on network competition. However
the research published today demonstrates that this is not the case,”
said John Giusti, Chief Regulatory Officer, GSMA. “We have found that
network competition produces faster and more extensive network coverage,
and the examples highlighted in the report indicate little evidence that
a SWN/WOAN is likely to achieve this.”

For decades, policymakers have favoured a competitive network structure,
licensing network usage to a limited number of competing mobile network
operators, usually under private ownership. This approach has resulted
in unprecedented growth and innovation in mobile services; the industry
has already connected more than 5 billion people globally, including 3.8
billion people in developing countries, providing access to tools and
applications that address a wide range of socioeconomic challenges.

To expand network coverage, mobile operators are already looking at ways
to balance competition with co-operation in infrastructure investment by
entering voluntarily into infrastructure sharing agreements. They are
also exploring new business models with third parties to share the cost
and risk of investment in rural and remote locations. The benefits of
network competition go well beyond coverage; innovation is a key driver
of consumer value at the national level, and this occurs where there is
competition amongst networks as well as in the delivery of services and
the launch of devices in a market.

“We are concerned that a move to wholesale networks will harm consumers,
as history has demonstrated that network monopolies normally result in
high prices and lower investment in infrastructure,” added Giusti. “With
this in mind, we call upon governments looking to implement a SWN or
WOAN to instead support the ability of mobile operators to enter into
infrastructure sharing agreements on a voluntary basis and consider how
they can apply market-friendly spectrum assignment methods to maximise
coverage, using appropriate spectrum license conditions to extend mobile
services to underserved areas.”

For further information, including the market case studies and
recommendations for policymakers, download the GSMA’s “Wholesale Open
Network Access: Case Studies” report at: https://www.gsma.com/spectrum/woan-report/.

About the GSMA

The GSMA represents the interests of mobile operators worldwide, uniting
nearly 800 operators with more than 300 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and internet companies, as well as organisations in
adjacent industry sectors. The GSMA also produces industry-leading
events such as Mobile World Congress, Mobile World Congress Shanghai,
Mobile World Congress Americas and the Mobile 360 Series of conferences.

For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter: @GSMA.